IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i7p777-788.html
   My bibliography  Save this article

Real Sectors` Performance as a Precursor to Economic Restructuring in Nigeria

Author

Listed:
  • Nwosu Chinedu A.

    (Department of Economics, Alvan Ikoku Federal College of Education, Owerri)

  • Ebomuche Ngozi C.

    (Department of Economics, Alvan Ikoku Federal College of Education, Owerri)

  • Emeh Kenneth O.

    (Department of Economics, Alvan Ikoku Federal College of Education, Owerri)

  • Ndukwe Obinna P.

    (Department of Economics, Alvan Ikoku Federal College of Education, Owerri)

Abstract

This study focused on real sectors performance as a precursor to economic restructuring in Nigeria. There seemed to be an unbalanced transition of the Nigerian economy from agriculture to industrial and to services sector which failed to achieve a transformed economy. The individual real sectors` growth have been disproportionate. Sector-specific policies need to be implemented due to recent service sector led growth in the economy. To proceed, we analyzed individual real sector performance using real sectors time series data from 1981 to 2018 sourced from CBN statistical bulletin and WDI. The study utilized the following variables: growth rate of real GDP (GDPR), growth rate of services sector output (SEVR), growth rate of manufacturing sector output (MANR), growth rate of industrial sector output (INDR), growth rate of Agricultural sector output (AGCR), growth rate of trade openness (OPEN) and Real interest rate (INTR).The Autoregressive Distributed Lag bounds testing approach to cointegration was utilized for this study. Using the bounds test, the result from the ARDL model indicate that the variables for this study are cointegrated while the error correction term appeared significant and confirms that short-run disequilibria are corrected up to 100 percent annually. This shows that the real sectors are the backbone of the economy. The empirical results reveals that the real sector growth exert positive and significant impact on economic growth both in the short-run and the long-run. Unlike previous findings that structural change must follow a certain pattern, our result implies that economic transformation in Nigeria requires a holistic policy framework to address each specific sector. We therefore, recommend that government should implement policies that will promote inter-sectoral linkages to achieve simultaneous growth in the real sectors. Nigerian trade performance should be improved through economic diversification and further availability of funds to private sector at competitive interest rate in order to produce internationally competitive products.

Suggested Citation

  • Nwosu Chinedu A. & Ebomuche Ngozi C. & Emeh Kenneth O. & Ndukwe Obinna P., 2023. "Real Sectors` Performance as a Precursor to Economic Restructuring in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 777-788, July.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:7:p:777-788
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-7/777-788.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/real-sectors-performance-as-a-precursor-to-economic-restructuring-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Naudé, Wim & Szirmai, Adam & Lavopa, Alejandro, 2013. "Industrialization Lessons from BRICS: A Comparative Analysis," IZA Discussion Papers 7543, Institute of Labor Economics (IZA).
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Wayne Nafziger, 2006. "From Seers to Sen: The Meaning of Economic Development," WIDER Working Paper Series RP2006-20, World Institute for Development Economic Research (UNU-WIDER).
    4. anonymous, 2006. "The future of economic development in rural America," Profitwise, Federal Reserve Bank of Chicago, issue Jul.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Uju Victoria Okoli & Ebele Stella Nwokoye & Ifeoma Rita Ezedebego, 2023. "Government Infrastuctural Spending and Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 457-469, May.
    2. Onyinye I. Anthony-Orji & Anthony Orji & Jonathan E. Ogbuabor & Emmanuel Nwosu, 2017. "An Empirical Re-examination," Journal of Infrastructure Development, India Development Foundation, vol. 9(1), pages 36-48, June.
    3. Karasoy, Alper, 2022. "Is innovative technology a solution to Japan's long-run energy insecurity? Dynamic evidence from the linear and nonlinear methods," Technology in Society, Elsevier, vol. 70(C).
    4. Bruce Morley, 2009. "A Comparison of Two Alternative Monetary Approaches to Exchange Rate Determination over the Long-Run," International Econometric Review (IER), Econometric Research Association, vol. 1(2), pages 63-76, April.
    5. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    6. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    7. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    8. Noraida, A.W. & Abdul-Rahim, A.S. & Othman, Mohd, 2017. "The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(2), pages 143-154.
    9. Georgios Bertsatos & Plutarchos Sakellaris & Mike G. Tsionas, 2022. "Extensions of the Pesaran, Shin and Smith (2001) bounds testing procedure," Empirical Economics, Springer, vol. 62(2), pages 605-634, February.
    10. Md.Yousuf & Raju Ahmed & Nasrin Akther Lubna & Shah Md. Sumon, 2019. "Estimating the Services Sector Impact on Economic Growth of Bangladesh: An Econometric Investigation," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(2), pages 62-72, June.
    11. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    12. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    13. Shuyang Chen, 2021. "The Urbanisation Impacts on the Policy Effects of the Carbon Tax in China," Sustainability, MDPI, vol. 13(12), pages 1-11, June.
    14. Boukraine, Wissem, 2020. "The finance-inequality nexus in the BRICS countries: evidence from an ARDL bound testing approach," MPRA Paper 101976, University Library of Munich, Germany.
    15. Garrod Brian & Almeida António & Machado Luiz, 2023. "Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(2), pages 154-172, December.
    16. Ngoo Yee Ting & Loi Siew Ling, 2011. "Okun’S Law In Malaysia: An Autoregressive Distributed Lag (Ardl) Approach With Hodrick-Prescott (Hp) Filter," Journal of Global Business and Economics, Global Research Agency, vol. 2(1), pages 95-103, January.
    17. Zheng, Li & Abbasi, Kashif Raza & Salem, Sultan & Irfan, Muhammad & Alvarado, Rafael & Lv, Kangjuan, 2022. "How technological innovation and institutional quality affect sectoral energy consumption in Pakistan? Fresh policy insights from novel econometric approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    18. Muhammad Shahbaz & Vassilios G. Papavassiliou & Amine Lahiani & David Roubaud, 2023. "Are we moving towards decarbonisation of the global economy? Lessons from the distant past to the present," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2620-2634, July.
    19. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2016. "Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa," MPRA Paper 76121, University Library of Munich, Germany.
    20. Birendra Bahadur Budha, 2013. "Demand for Money in Nepal: An ARDL Bounds Testing Approach," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 25(1), pages 21-36, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:7:p:777-788. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.